Health insurer ConnectiCare has backed down and announced it will sell plans on the state’s health care exchange next year. The Farmington-based company withdrew its legal and regulatory appeals against the rates determined by the Connecticut Insurance Department.
Last week, ConnectiCare sent a letter to Access Health CT formally notifying the exchange that it could no longer offer plans for 2017 after the rates it requested were cut back by regulators.
The insurer had proposed raising its exchange plans by some 27 percent, but the Connecticut Insurance Department cut that request down to an average of 17.4 perent.
But within that same letter, ConnectiCare said that quitting the exchange was not its desired outcome, and it would continue to seek all avenues to continue to provide plans to its almost 50,000 Obamacare customers.
Late Tuesday, after talks with Access Health CT officials, ConnectiCare CEO Michael Wise issued a statement that said, in part:
After hearing from state officials, providers and beneficiaries about the importance of our plan to Connecticut, we have decided to move forward into 2017 as a plan on the Exchange at the rates approved by the Department. To that end, we have withdrawn our legal appeals with the courts and the Department, and we have sent a letter to the Exchange rescinding the termination notice that we sent to them on Friday.
Governor Dannel Malloy, Lieutenant Governor Nancy Wyman, and Insurance Commissioner Katharine Wade issued a joint statement welcoming ConnectiCare's decision:
"ConnectiCare has been a valuable partner in this effort to build a healthier state, a stronger workforce, and a better marketplace for us all. I welcome their decision to stay," said Wyman, who is chair of the Board of Directors of the exchange. "I also want to recognize Jim Wadleigh, the CEO of Access Health CT, Commissioner Wade, and ConnectiCare for their commitment to resolving this situation to the benefit of residents."
ConnectiCare's decision saves the exchange from a potentially troubling situation. Had the insurer quit the system, only one company, Anthem, would have remained to provide plans in 2017.
